The downgrade reflects a number of challenges the system is facing such as weakened standalone operating performance in fiscal year 2013 and fiscal year 2014 as well as the hospital’s plans to create an expansive integrated healthcare delivery system throughout New York, according to Moody’s.
The system’s strengths, including its strong market position, stable and strong senior leadership team and conservative capital structure, were also considered for the rating downgrade.
Although a further downgrade is not expected in the near-term, Mount Sinai’s rating may be upgraded over the longer term if the health system “is able to benefit from its significant size and scope and achieve sustained improvement in operating performance and liquidity,” according to Moody’s.
More articles on ratings:
7 recent hospital rating and outlook changes, affirmations
Moody’s affirms Northwest Community Hospital’s ‘A2’ bond ratings
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.